JSSM  Vol.3 No.2 , June 2010
The Method of Real Options to Encourage the R & D Team
ABSTRACT
In some projects, the R & D appears to be a failure, and according to traditional methods of encouragement motivation, it is hard to get any awards for the R & D team. But there is a valuable option implied in it. This article discusses the method of real options to encourage R & D team when the enterprises can not achieve the desired economic benefit in the case of high-risk project or the immature market. The process of method includes: Identify the real option type of high-risk projects, Design the incentive mechanism and Design specific exercise ways.

Cite this paper
J. Gao and L. Jiang, "The Method of Real Options to Encourage the R & D Team," Journal of Service Science and Management, Vol. 3 No. 2, 2010, pp. 235-240. doi: 10.4236/jssm.2010.32029.
References
[1]   F. Hu, “Incentive Compensation Study on R & D Team,” South China Normal University, Guangzhou, 2004.

[2]   T. J. Englander, “Casey at the Bank,” Incentive, Vol. 167, No. 2, 1993, p. 20.

[3]   R. J. Doyle, “Caution: Self-Directed Work Teams,” Human Resource Magazine, Vol. 37, No. 6, 1992, pp. 153-155.

[4]   B. Geber, “The Bugaboo of Team Pay,” Training, Vol. 32, No. 8, 1995, pp. 25-34.

[5]   J. R. Hoffman and S. G. Rogelberg, “A Guide to Team Incentive Systems,” Team Performance Management, Vol. 4, No. 1, 1998, pp. 23-32.

[6]   S. Y. Chen, X. W. Tang, D. B. Ni et al., “Value Analysis on Non Material Incentive in Combination Incentive to Managers,” Chinese Journal of Management Science, Vol. 13, No. 1, 2005, pp.122-126.

[7]   W. J. Zhang and J. F. Li, “Motivation System in Chinese Knowledge-Enterprises,” Science Research Management, Vol. 22, No. 6, 2001, pp. 90-96.

[8]   X. Li and G. S. Zhang, “The Effect of Stock Option Incentive for Manager from the Team Theory,” Business Times, Beijing, 2007.

[9]   L. Yin, Z. Y. Zhao et al., “The Theory and Practice of Stock and Option Incentive for High-tech Enterprise,” Science Press, Beijing, 2004.

[10]   X. W. Yuna, Z. Qin and J. B. Yi, “Interplay Mechanism of Learning and Performance in Organizations,” Science Research Management, Vol. 27, No. 6, 2006, pp. 80-85.

[11]   S. F. Bi, D. S. Li and X. Ma, “The Application of Compound Option Method to the Project Evaluation,” Science Research Management, Vol. 29, No. 3, 2008, pp. 109-113.

[12]   C. Wu and H. H. Hu, “Research on the Long Term Incentive Mechanism under Executive’s Management of Combined Investment,” Chinese Journal of Management Science, Vol. 15, No. 6, 2007, pp. 125-131.

[13]   Z. G. Zhang, “Study on R & D Staff Incentive Payment Based on Compound option Model,” Science of Science and Management of S. & T., Vol. 28, No. 8, 2007, pp. 179-183.

[14]   H. L. Ding, “The Path Research of Benefit Apportion- ment for Technology Elements,” Journal of Nanjing Party Institute of CPC and Nanjing Administration Institute, Vol. 5, 2004, pp. 26-29.

[15]   F. L. Chen and Z. G. Hu, “Research on Quantitative Apportionment Involving Technological Factors for Tech- nology-oriented Enterprises,” Science Research Management, Vol. 29, No. 2, 2008, pp. 89-96.

[16]   C. P. Yang, “Real Option and its Application,” Fudan University Press, Shanghai, 2003.

 
 
Top